Most times, employers try to avoid extra business cost by totally avoiding employee development and education activities. But in the long run, that helps the employers to be on the losing side. The pros by far outweigh the cons and you reap the benefits of employee development over time. Aside from having to keep extra cost while budgeting for your staff development, there are more to gain in learning different techniques for employee retention.
When you invest in employee development, the funds you spend on staff recruitment will reduce abruptly. And most employees who are good at their job with adequate training will never want to leave a company that further develops their capacity.
You will definitely not be part of the U.S. business owners that spend over $11 billion annually as costs for employee turnover, according to estimates. You will easily retain the best hands amongst your employees. It is cost effective to retain employees through the capacity building than to hire new employees. Employee capacity building inspires good employees to stay on with heightened loyalty to the company that ensures that their capacity is continuously built.
Find very good employees
Stocking up good employees will make it very easy to appoint your best hands. Other wonderful hands who feel underdeveloped in other firms will definitely drift towards your firm to be hired because, with your staff development program, they see great prospects for growth with your firm. This will boost your company's reputation amongst your industry circle, and yield employee retention.
Builds customer base and loyalty
If your customers become aware that the best hands on the job are on your payroll, they will develop a heightened level of trust and satisfaction with your products and services, hence patronage of your company will spike up and inadvertently the customers will unconsciously advertise your business by spreading good testimonies about your company, which is a viable employee retention technique.
You can promote from within
In a study by a management professor at Wharton University, Matthew Bidwell, promoting people from inside your company to managerial positions is a much safer move than making external hires. All Bidwell was saying is that external recruits are worse in performance than your staff who had been groomed and promoted from within and earn about 20% more in wages than your in-house employee, with a lesser degree of loyalty and a higher likelihood of deserting your company within the first two years.
Grooming your staff and promoting internally will help you avoid this in totality, boosting your employee retention potential. An employee that has shown loyalty over time, with a better understanding of your business model is to be better managers than external recruits. As you groom and develop your staff through capacity building, you will be able to spot not just the brightest amongst them, but also pick out the ones that are naturally endowed with managerial skills.
It ensures longevity
Every cent spent on staff development and capacity building is a cent spent to ensure a strong and better future for your firm. The employee you develop will groom, nature and grow with your company. After each development program, your employees would want to eagerly showcase what they have been able to learn by way of latest technologies and hence will innovate and bring up new ideas for the advancement and to the advantage of your company; therefore your company will never be missing in the trend of things around your industry circle.
There will be rekindled zeal and heightened loyalty to put in more and build a future with your company. Investing in employee development is an unconscious investment in the future and longevity of your company.
Engagement and productivity is increased
To reduce drudgery among your employees, it is very good to keep them engaged with programs that will develop their capacity. Drudgery reduces productivity and for increased and improved productivity, it is very good to keep your employees engaged by programs that will improve them and get them to be more efficient and better. Employees are naturally better engaged and more productive when they see that they are about moving up the ranks, taking up greater responsibilities or more interesting and intriguing work projects.